One of the common challenges countless companies face is hedging against currency risks, especially when taking businesses global. Although there’s no one-size-fits-all approach to reducing FX risks, implementing a hedge accounting program can prove invaluable.

This article covers the client case study of a market-leading manufacturing business listed on the ASX. The business was experiencing strong sales growth in the UK market and wanted to lock in projected GBP forecasts into known AUD equivalents.

With an exposure draft anticipated from the IASB in Q1 or Q2 2025 significant developments are expected in the area of Dynamic Risk Management (DRM) under IFRS 9. 

This post summarises recent discussions from the IASB's working group on the presentation and scope of DRM, a model designed to simplify and standardise the approach to dynamic interest rate risk hedging, particularly within the banking sector.

Introducing Hedgehog, the hedge accounting advisory-tech software for clean, accurate and easy solutions to your compliance and reporting needs.

Heads up CFOs! There’s a new accounting standard coming your way. Here's how to be prepared...

In corporate finance, ABS is not just a financial tool, it's a strategic move that can generate value on a grand scale, making it a crucial aspect of your professional toolkit.

In this article, we’ll explore how your business can leverage IFRS 9 to create a more stable earnings profile for your business.

Proper hedge accounting documentation is not only suggested as best practice; it’s required under IFRS 9. The inability to abide by the proper hedge accounting standards can leave your business with disallowed hedges, an unclean audit opinion, and increased risks.

In this article, we’ll cover the 3 common hedge accounting documentation mistakes finance teams make and how you can avoid them.

From our experience, most companies aren’t able to perform the proper hedge accounting testing. This leads to falsely assuming hedges are 100% and doing nothing, creating a ticking time bomb.

In this article, we’ll cover the importance of hedge accounting effectiveness testing and strategies you can use to test your hedges properly.

With the financial landscape continuing to evolve, it’s important that you have the resources and solutions in place to effectively manage your hedge accounting programs, minimise risks, and maximise compliance.

In this article, we’ll explore the eight pillars of the HEDGEHOG Method in more detail.

Chief Financial Officers (CFOs) play a crucial role in safeguarding important financial metrics; however, they often need more hedge accounting support when reporting and maintaining the books.

As an experienced hedge accounting specialist who provides advisory and managed services to CFOs worldwide, I have firsthand insights into the intricacies CFOs must navigate. This is precisely why I wrote my book Hedge Accounting Unlocked: An Essential Guide for CFOs.

Hedge accounting is a complex practice that involves managing risks associated with financial instruments and fluctuations in the market.

While internal accounting teams play a vital role in a company's financial operations, there are certain challenges they may face when it comes to running hedge accounting programs effectively.

In the dynamic world of finance, managing risks effectively is crucial for companies to thrive. Hedge accounting is a powerful tool that allows businesses to offset gains or losses from financial instruments used to mitigate various risks. Here we explore the 3 types of hedge relationships that play a pivotal role in achieving financial stability and transparency.

Accurate financial reporting and identifying gaps within the hedge accounting program are critical for a successful end-of-year financial assessment.

To streamline the auditing process and ensure compliance, we’ve created a comprehensive 4 step guide specifically for audits involving IFRS 9 hedge accounting which provides auditors with a systematic approach to identify gaps and potential errors in financial records.

Hedge accounting is a valuable tool that empowers businesses to tame wild market volatility and safeguard their financial statements. But, not every financial transaction or instrument is eligible for this accounting treatment.

In the world of finance, understanding the fundamental principles of hedge accounting is crucial for your company's success. It's a complex process that requires meticulous documentation and analysis, but when executed correctly, it provides an accurate reflection of your financial position and performance.

As a Chief Financial Officer, you understand that managing financial risks is a top priority. From determining the right type of hedge accounting to navigating complex accounting standards, it can feel overwhelming at times. That's where outsourcing hedge accounting becomes a game-changer for businesses of all sizes.

As a financial accounting professional, you are likely familiar with the concept of hedge accounting. It's a valuable practice that helps businesses manage the risks associated with fluctuations in the market by offsetting gains or losses of financial instruments. However, implementing hedge accounting can be complex, and mistakes can be costly.

Attracting new investors is essential for the success of any fund. In the past, fund managers would often brush off questions about FX risk in relation to fund performance by stating that investors manage this risk themselves. However, recent trends have shown that this is no longer the case. Investors, particularly retirees, want the fund to manage the risk for them through a hedged class of units. This has created a new set of challenges for funds, including finding effective hedges and obtaining the Taxation of Financial Arrangements (TOFA) election. Learn more

Risk management professionals are constantly coming out with new exotic options. These options have strange names, such as ‘Seagull’ or ‘Knock-in and Knock-outs’.

Despite the exciting names, leveraged options often come with disadvantaged accounting treatment. Learn more.

The old adage, “if it’s too good to be true, it probably is,” sums up hedge effectiveness testing perfectly. If you think the process is easy and straightforward because your hedges are 100% effective, you need to look closer.